THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE TOM GALLAGHER IN THE MATTER OF: CASE NO.: 36904-00-AG FRANK THOMAS LAZZARA / ADMINISTRATIVE COMPLAINT FRANK THOMAS LAZZARA 201 W. Laurel Street, Apt. 306 Tampa, FL 33602 FRANK THOMAS LAZZARA 4415 West Lackland Tampa, FL 33616 FRANK THOMAS LAZZARA 4590 Orient Road, Suite A Tampa, FL 33610-7229 You, FRANK THOMAS LAZZARA, are hereby notified that the Insurance Commissioner of the State of Florida has caused to be made an investigation of your activities while licensed as a bail bond agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 648, Florida Statutes, you, FRANK THOMAS LAZZARA, currently the holder of a limited surety agent license (2-34). 2. Pursuant to Chapter 648, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance license and appointments. COUNT | 3. The above general allegations are hereby realleged and fully incorporated herein by reference. 4. At all times relevant to the allegations in this Administrative complaint you, FRANK THOMAS LAZZARA, were doing business as Lazzara Bail Bonds. 5. On or about March 30, 1995, you, FRANK THOMAS LAZZARA, entered into a Sub-Agent’s Indemnification Agreement with Ranger Insurance Company, a surety company, and general agent Cyril E. Parish of C.E Parish General Agency, Inc. 6. At all times relevant to the allegations in this Administrative Complaint C.E Parish General Agency, Inc., has acted as the general agent for Ranger Insurance Company. 7. You, FRANK THOMAS LAZZARA, agreed in the Sub-Agent’s Indemnification Agreement that you were liable to the surety company and to the general agent for any and all bonds written by Sub-Agent William Gorton. In the Sub- Agent's Indemnification Agreement you further agreed to “indemnify and hold harmless the surety and the general agent from any and all claims, losses, expenses, or liabilities, of any kind or nature, whatsoever, arising out of any act, or alleged act, or omission of sub-agent”. 8. On or about April 31, 1995, Larrara Bail Bonds posted a Ranger Insurance Company bond for defendant Ross Hopkins in the amount of five thousand dollars ($5,000). Sub-Agent William Gorton wrote the bond for Lazzara Bail Bonds. 9. Lazzara Bail Bonds and/or William Gorton as sub-agent for Lazzara Bail Bonds accepted four thousand five hundred dollars ($4,500) as collateral for the bond posted for defendant Ross Hopkins. 10. Onor about August 14, 1995, the bond issued for defendant Ross Hopkins was discharged. 11. Onor about September 8, 1995, Raymond R. Pines, attorney for Ross Hopkins sent a letter with a copy of the Certificate of Discharge to Lazzara Bail Bonds requesting the return of the four thousand five hundred dollars ($4,500) collateral. 12. You, FRANK THOMAS LAZZARA, failed to promptly return the full four thousand five hundred dollars ($4,500) collateral to Ross Hopkins. 13. Onor about October 19, 1995, you, FRANK THOMAS LAZZARA, sent a cashiers check in the amount of one thousand fifty dollars ($1,050) to general agent C. E. Parish as a partial payment on the total outstanding collateral that was due to Ross Hopkins in the amount of four thousand five hundred dollars ($4,500). 14. Onorabout October 26, 1995, C.E Parish General Agency, Inc., mailed a bank check in the amount of four thousand five hundred dollars ($4,500) to Ross Hopkins, such sum constituting the return of the collateral that was due to Ross Hopkins. 15. Onor about May 17, 1996, C.E Parish General Agency, Inc., applied a transfer fee in the amount of fifty dollars ($50.00) that was due to you, FRANK THOMAS LAZZARA, thereby reducing the outstanding amount that you owe to C.E Parish General Agency, Inc., to the amount of three thousand four hundred dollars ($3,400.00). 16. You, FRANK THOMAS LAZZARA, are required to fully indemnify C.E Parish General Agency, Inc., for the collateral that it returned to Ross Hopkins. 17. You, FRANK THOMAS LAZZARA, have failed after repeated demands by C.E Parish General Agency, Inc., to remit the outstanding three thousand four hundred dollars ($3,400.00) that you owe to the general agency. 18. You, FRANK THOMAS LAZZARA, have misappropriated and converted for your own use and benefit three thousand four hundred dollars ($3,400.00) in collateral that should have been remitted by you to the managing general agent C.E Parish General Agency, Inc. IT IS THEREFORE CHARGED that you, FRANK THOMAS LAZZARA, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments: (a) All premiums, return premiums, or other funds belonging to insurers or others received by a person licensed pursuant to this chapter in transactions under her or his license are trust funds received by the licensee in a fiduciary capacity, and the licensee must account for and pay the same to the insurer, insured, or other person entitled to such funds. [Section 648.295(1), Florida Statutes]; Any licensee who unlawfully diverts or appropriates such funds or any portion thereof to her or his own use commits larceny by embezzlement, punishable as provided by law. [Section . 648.295(3), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648.45(2) (e), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2) (g), Florida Statutes]; (d) Misappropriation, conversion, or unlawful withholding of moneys belonging to a surety, a principal, or others and received in the conduct of business under a license. [Section 648.45(2)(h), Florida Statutes]; (e) Willful failure to comply with, or willful violation of, any proper order or rule of the department or willful violation of any provision of this code. [Section 648.45(2)(/), Florida Statutes]; (f) Demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)\\), Florida Statutes]; (g) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c), Florida Statutes]. (h) Failure or refusal, upon demand, to pay over to any insurer the bail bond agent represents or has represented any money coming into his or her hands which money belongs to the insurer. [Section 648.45(3)(d), Florida Statutes]. (i) Being found to be a source of injury or loss to the public or detrimental to the public interest or being found by the department to be no longer carrying on the bail bond business in good faith. [Section 648.45(3)(e), Florida Statutes} WHEREFORE, you, FRANK THOMAS LAZZARA, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or revoking your licenses and appointments as a limited surety agent or to impose such penalties as may be provided under the provisions of Sections 648.44, 648.45, 648.49, 648.52, and 648.53, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. | NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes and Rule 28-106, Florida Administrative Code (F.A.C.), you have a right to request a proceeding to contest this action by the Department. You may elect a proceeding by completing the attached Election of Rights form or filing a Petition. Your Petition or Election of a proceeding must be in writing and must be filed with the General Counsel acting as the -Agency Clerk, Department of Insurance. If served by U.S. Mail the Petition or Election should be addressed to the Florida Department of Insurance at 612 Larson Building, - Tallahassee, Florida 32399-0333. If Express Mail or hand delivery is utilized, the Petition or Election should be delivered to 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0300. The Petition or Election must be received by, and filed in the Department within twenty-one (21) days of the date of your receipt of this notice. YOUR FAILURE TO RESPOND TO THIS ADMINISTRATIVE COMPLAINT WITHIN TWENTY-ONE (21) DAYS WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If a proceeding is requested and there is no dispute of fact the provisions of Section 120.57(2), Florida Statutes would apply. In this regard you may submit oral or written evidence in opposition to the action taken by this agency or a written statement — challenging the grounds upon which the agency has relied. While a hearing is normally Soe Rem not required in the absence of a dispute of fact, if you feel that a hearing is necessary one will be conducted in Tallahassee, Florida or by telephonic conference call upon your request. If you dispute material facts which are the basis for this agency's action you may request a formal adversarial proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes. If you request this type of proceeding, the request must comply with all of the requirements of Rule 28-106, F.A.C. and contain a) A statement identifying with particularity the allegations of the Department which you dispute and the nature of the dispute; b) An explanation of what relief you are seeking and believe you are entitled to; c) Any other information which you contend is material. _These proceedings are held before a State administrative law judge of the Division of Administrative Hearings. . Unless the majority of witnesses are located elsewhere the Department will request that the hearing be conducted in Tallahassee. If a hearing is requested, you have the right to be represented by counsel, or other qualif ied representative, to take testimony, to cal and t to cross-examine witnesses, and tol have subpoena ¢ and subpoena duces tecum issued on your behalf. Pursuant to Section 120.573, Florida Statutes, you are hereby notified that 7 mediation i is not available. * Filure to follow ihe procedure c outlined w with regard to your response to this | notice may result in the request being denied. All prior correspondence i in this matter shall be considered freeform agency action, and no such correspondence shall operate as a valid request for an administrative proceeding. Any request for administrative proceeding received prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above. DATED and SIGNED this el day of Mth lu , 2001. ia KENNEY SHIPLEY Deputy Insurance Commissioner CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: FRANK THOMAS LAZZARA, 201 W. Laurel Street, Apt 306, Tampa, FL 33602; FRANK THOMAS LAZZARA, 4415 West Lackland, Tampa, FL 33616; and FRANK THOMAS LAZZARA, 4590 Orient Road, Suite A, Tampa, FL 33610-7229, by Certified Mail this _ U7 say of Agere _, 2001. MIGUEL OXAMENDI Senior Attorney Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4130 ee

Docket for Case No: 01-003908PL